Analyzing Blend Labs (NYSE:BLND) and Workday (NASDAQ:WDAY)

Blend Labs (NYSE:BLND) and Workday (NASDAQ:WDAY) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Institutional & Insider Ownership

52.6% of Blend Labs shares are held by institutional investors. Comparatively, 89.8% of Workday shares are held by institutional investors. 40.3% of Blend Labs shares are held by company insiders. Comparatively, 18.6% of Workday shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Blend Labs and Workday”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blend Labs	$123.51 million	2.73	-$6.80 million	($0.09)	-15.83
Workday	$9.55 billion	4.69	$693.00 million	$4.93	37.67

Workday has higher revenue and earnings than Blend Labs. Blend Labs is trading at a lower price-to-earnings ratio than Workday, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Blend Labs has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Workday has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Blend Labs and Workday, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blend Labs	1	3	4	0	2.38
Workday	2	18	20	0	2.45

Blend Labs currently has a consensus target price of $2.82, indicating a potential upside of 97.66%. Workday has a consensus target price of $206.34, indicating a potential upside of 11.12%. Given Blend Labs’ higher possible upside, analysts plainly believe Blend Labs is more favorable than Workday.

Profitability

This table compares Blend Labs and Workday’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blend Labs	0.32%	N/A	-3.15%
Workday	12.32%	20.95%	9.22%

Summary

Workday beats Blend Labs on 11 of the 14 factors compared between the two stocks.

About Blend Labs

Blend Labs, Inc. engages in the provision of cloud-based software platform solutions for financial services firms in the United States. It operates in two segments, Blend Platform and Title365. The company's Blend Builder Platform offers a suite of products that powers digital-first consumer journeys for mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts; and offers mortgage products to facilitate the homeownership journey for consumers comprising close, income verification for mortgage, homeowners' insurance, and realty. It also offers verification components to automate confirmation tasks that are needed to underwrite a loan or approve the opening of a new deposit account; decisioning components to reduce the need for human intervention by automatically applying business rules throughout an application workflow configured by a financial services firm; workflow intelligence components to manage data collection and automate tasks throughout the loan origination process; and marketplace components to enable consumers to shop for products and services presented at the precise moment of need during an application for a loan. In addition, the company, through its subsidiary, offers title search procedures for title insurance policies, escrow, and other closing and settlement services, as well as other trustee services; and provides professional and consulting services. It serves banks, credit unions, fintechs, and non-bank mortgage lenders. The company was incorporated in 2012 and is headquartered in San Francisco, California.

About Workday

Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.